Introduction to Business Law- Assignment 1B Advise TLC Ltd. as to any possible action they may have for misrepresentation against answer Ltd. ____________________________________________________________ _________ Treitel in The Law of Contract (2003) defines a contract as: "An agreement giving rise to obligations which are enforced or recognised by law. The factor which distinguishes contractual from other legal obligations is that they are based on the agreement of the contracting parties." This quote illustrates the basic criteria for a contract. A contract is a legally binding agreement between two or more parties, it can be written or oral. There is no mention of a written contract between TLC and Answer, therefore we must assume there is an oral contract. The classical approach to determining whether a contact has been created involves agreement, consideration and intention. In order for an agreement to exist between parties there must be an offer that contains the terms of the contract. If the offeree accepts, they accept these terms. In this case, Answer offers the supply and installation of a new computer system and TLC accept this offer and have the system installed for the sum of £100,000. Consideration is the price for which a promise is brought. It’s the giving of consideration for a promise that makes breaking the promise unjust. Defined in Currie v Misa (1875) as- “Some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by another”. There must also be intension to create a contract. In commercial situations such as this the intent to create a contract is presumed. In Edwards v Skyways Ltd (1964)- the defendant was promised on being made redundant, and withdrawing his pension contributions, the company would give him an ex gratia (given out of grace- accepting no liability) payment of the same again. He withdrew his pension but did not receive the extra payment. It was held by the court that the presumption to create a legally binding contract prevailed, and all the term ex gratia means is there is no previous legally binding contract. A representation is a statement made regarding the contract that induces the other party to enter the contract. A false representation is not a breach of contract but may lead to court action for misrepresentation under the Tort of deceit or the Misrepresentation Act 1967.
The common rules of offer and acceptance need to be considered in determining if Gordon formed a contract with Ritebuild Ltd before they purported to withdraw their offer.
-Court must be convinced that failure to comply with an agreement will lead to one of the parties to suffer prejudice. Court will protect innocent party, will provide remedy
A contract between two parties must have certain element to be considered tangible or authentic. The element of the contracts will enclose guarantees that are enforceable and thus legal (Seaquist & Coulter, 2012). For a contract to be legal the promises include in the contract has to meet specific benchmarks. A valid contract simply means that it can enforce in the courts (Seaquist & Coulter, 2012). According to Seaquist & Coulter (2012) “a valid contract to be formed that is enforceable by a court, each of the following criteria...
Contracts are legal binding agreements whether verbally or written between two or more competent people. They also can be contractual agreements between businesses for services or goods, employment, trade, or lease. Regardless of what type of contract the parties are entering there are six elements they need to follow in order to come to a successful legal understanding. Contracts are built on the fundamentals of offer and acceptance, intention to create legal relations, consideration, legal capacity, consent, and illegal and void contracts. Any contract which represents false statements, unwarranted
Agreement is a mutual understanding of two parties and willing to accept terms and conditions in order to form a legal contract (Penthony et al.2014). Agreement consists of two components; offer and acceptance. Offer is made by an offeror in an exchange for performance from another party on certain terms while acceptance is the action of accepting to the terms of the offer. An offer must follow the requirement in order to form
In fraudulent misrepresentation, an individual not only lied or misrepresented a fact about a transaction, but the individual did it on purpose, in order to mislead the other party. Individuals also enter into contracts they would not ordinarily due to physical and economic duress and duress of goods. Undue influence in a contract results when someone has taken advantage of their relationship and uses it to their advantage over another person.
This essay will go through imperative elements for implementing fraudulent misrepresentation and to provide innocent party to recover civil damages, gain an injunction or other remedies from the other party. Business law is very broad concept of law which covers all the legal issues that include many commercial and domestic cases which make up most of the civil cases and there are only few criminal cases where there has been serious breach of law. With the help of reference to relevant case law, this essay will argue that Bob Wheelie suffered loss due to fraudulent misrepresentation of historical figures of business by Mr Spoke as Bob anticipated that the business was in good financial position whereas the business was struggling and he ended
Suppose a man shouts an offer to another man who is at the other end of a river. While the man is replying, an aircraft flies overhead. In that case there is no contract. Contract will come into existence only when the aircraft goes so that the man can shout his acceptance again and make himself be heard by the
A contract is an agreement which has its specified terms and conditions between two or more parties in which there is a promise to do something in return for a benefit.
A contract is a written or spoken agreement established by three key elements; offer, acceptance & condition. The person making an offer is called the offeror, and the person to whom the offer is made to is called the offeree . An offer is an expression
Terms of contract set out duties of each party under that agreement, a contractual term is legally binding to the relevant parties involved while a representation is more towards showing interest in forming a contract but is not legally binding. There are two different types of terms which are known as express terms and implied terms. An express term are terms that are laid down by the parties themselves whereas implied terms are read into the contract by the court on the basis of the nature of the agreement and the parties’ apparent intentions, or on the basis of law on certain types of contract. Statements made during the course of negotiations could amount to a contractual term or a representation. It is important to know whether a particular statement is a contractual term or if it is a representation, as this will determine the appropriate cause of action and remedy available. In the case of Heilbut, Symons & Co v Buckleton, the court held that there are 4 factors that must be taken into consideration before deciding whether the statement is a term or a mere representation.The first factor is known as time. Here, the courts will consider lapse of time between the making of the statement and the contract's conclusion. In other words, if the interval is short the statement is more likely to be a term. Routledge v. McKay. However, if the statement is otherwise strong and important, then this may override the significant delay between when the statement was made and when the contract was made. Schawel v. Reade The second factor that the courts take into consideration is the importance of the statement in finalising the contract. If the statement is so important that a party would not otherwise have entered into the contract, the...
The reader can conclude that the Positive Assertion of facts that may be half true or false but without an intention to deceive and for to enter into the contract is Misrepresentation. In addition, it tells about how ICA laws deals under section 18 (1) of ICA for the Misrepresentation in the above including innocent misrepresentation, negligent misrepresentation and fraudulent misrepresentation with examples of cases discussed. The discussion also highlights for the reader is to make be sure for the contract is to be lawful real and in good faith, if unlawful than it will be consider as void and ICA Laws will deals against it under Misrepresentation.
Contracts and agreements have many key differences. A contract is an agreement between two parties that is legally binding. In order for a contract to be valid and have legal standing, it must have four requirements; consideration, contractual capacity, and legality. Without all four of these requirements it is not considered a contract and has no legal standing. An agreement is an understanding or some type of arrangement between two or more parties and does not need to have the four requirements that a contract must have. Most of the time, agreements are informal and not enforceable by law.
The nature of the misrepresentation, including its seriousness, cf William Sindall plc v Cambridgeshire County Council (1993)
A contract is generally considered to be an exchange of promises or an agreement between parties which in due course legally binds the parties; this can be enforced by the English Law. A contract is always, referred to the basic foundations of Contract Law, which refers to promises being kept amongst two parties. It is clear that all people make contracts nowadays and do not even consider for a moment that they are forming contracts; these can be formal or informal, oral or written.